Traders have been talking about the prospect of hitting the 1520 area on the index since November, and today the level was touched and briefly taken out on the upside. There is now not a lot of resistance before the index would reach its life highs. The bulls will argue that this time is different, on the third test of those highs, as we are exiting a recession rather than beginning one. When and if the breakout takes place, it could well end up converting skeptics as professional managers attempt to keep up with their peers. A breakout if it comes would also end 12 years of sideways motion in a huge trading range which on a yearly chart looks much like consolidation of the previous uptrend. While such a move isn't today's business, it is worth keeping in mind if the index continues to move up. For now, resistance is at 1523.57. Support is at 1518.31. Sectors are mixed today, with Technology, Health Care, and Consumer Staples laggards or in the red. The Financials and Industrials are seeing the best relative strength.
Happy demi-anniversary, stock market rally. Will the honeymoon ever end?